Computer Glitch Causes Mortgage Customers to Underpay Interest
National Australia Bank Ltd (NAB) has announced there will be no earnings posted for its UK subsidiaries due to a 14.5 million pound blunder involving 18,000 British customers. Clydesdale Bank and Yorkshire Bank undercharged the customers an average of 800 pounds worth of interest on their mortgage payments thanks to a computer glitch.
The lenders have written customers to inform them of the error and their intentions to raise interest payments to recoup the revenue. "They’ve advised customers that their repayment scheduled will be revised to account for that error which, in most cases, means additional repayment will be required." said NAB spokesman George Wright. "The money that would have originally been required to be paid under the loan contract will have to be repaid." Customers have been given a 60 day notice period. More than half will be paying an additional 25 pounds a month in interest. Steve Reid, Clydesdale Bank retail director said: "We are very sorry that this error has happened."